Business
Sebi proposes rules on pricing of IPOs
Mumbai: India’s market regulator plans to require new-age tech firms to justify the pricing of shares for their IPOs to ensure transparency, after shares in some of these companies crashed and eroded billions of dollars in investor wealth.
A discussion paper by the Securities and Exchange Board of India (Sebi) on Friday set March 5 as the deadline for public comment. Shares of some new-age tech companies like Paytm and Zomato have plummeted since going public.
Regulators want new-age tech companies to detail how they price shares in initial public offerings (IPOs), compare them to pre-IPO stock sales, and publish any pre-IPO investor presentations to help investors make decisions. a wise decision.
Sebi observed that many of these companies are going public without a solid track record of profitable operations for at least three years. These companies typically have been losing money for a long time before breaking even because they chose to scale rather than make profits during the growth phase.
Some have gone public in the past year, hoping to capitalize on the stock market’s record rally. However, most are currently trading at a discount. Currently, the company only discloses earnings per share (EPS), price-to-earnings (P/E), return on equity (RoNW) and net asset value (NAV) and how these accounting metrics compare with peers, i.e. similar – the largest in the industry big company.
Such traditional parameters cannot be applied to new-age tech companies, Sebi said. It states that disclosures in the “Basics of Issuance Price” section must be supplemented, especially for loss-making companies, using non-traditional parameters such as key performance indicators (KPIs) and disclosing certain additional parameters such as transactions/fundraisings based on past valuations Activity.
“New-age startups that go public differ from traditional companies and this move is imminent as most startups are losing money. Before filing any offering documents, such companies should disclose estimates based on new offerings and acquisitions over the past 18 months. Current metrics may not be sufficient to give investors a clear picture of a company’s financial metrics. These new proposed reporting parameters will help investors make informed investment decisions related to these new age companies,” said Sonam, Managing Partner, KS Legal Chandwani said.
In his six-page paper, Sebi said such companies should disclose any key KPIs shared with any pre-IPO investors in the three years preceding the IPO.
Complete News Source : Mint
Business
Virat Kohli pays tribute to Ratan Tata, Jay Shah ‘deeply saddened’ by veteran industrialist’s demise
Tributes continue to pour in for Ratan Tata, with Virat Kohli and Jay Shah taking to their social media accounts to bid farewell to the industrialist.
Former Indian captain and batting legend Virat Kohli paid a touching tribute to Ratan Tata, the legendary business tycoon, who passed away on Wednesday night. Tata, a Padma Vibhushan recipient, was undergoing treatment in intensive care since Monday but breathed his last in Mumbai, leaving a profound impact on many across the nation.
Kohli expressed his condolences through his Instagram account on Thursday morning, sharing a heartfelt message along with a photo of the late industrialist.
Tata’s contribution to business, society, and philanthropy has been widely acknowledged, and his passing marks the end of an era.
The Board of Control for Cricket in India (BCCI) secretary, Jay Shah, also conveyed his sorrow, stating, “Deeply saddened by the loss of Shri Ratan Tata Ji. His leadership, integrity, and dedication to society set a remarkable standard for legacy. My heartfelt condolences to his loved ones. Rest in peace, Sir.” Shah’s words reflect the collective grief of a nation that has long admired Tata’s contributions to the country.
BCCI’s tribute
Additionally, the BCCI issued a statement about his demise.
“The BCCI expresses its deepest sorrow and joins the nation in mourning the passing of Shri Ratan Tata ji. His invaluable contributions across diverse fields have been instrumental in shaping India’s growth and success story.
His extraordinary legacy, founded on the principles of passion, empathy, visionary leadership, innovation, and excellence, will continue to inspire and guide future generations for years to come,” the statement read.
Ratan Tata, born on December 28, 1937, in Mumbai, embarked on his journey with the Tata Group in 1962 as a young executive. Over the decades, he transformed the group into a global conglomerate. His work was acknowledged with India’s second-highest civilian honour, the Padma Vibhushan, in 2008, and he received numerous accolades, including honorary doctorates from prestigious institutions in India and abroad.
Tata is survived by his family, including brothers and sisters Simone Tata, Jimmy Tata, Noel Tata, Aloo Tata, Shireen Jejeebhoy, Deanne Jejeebhoy, Leah Tata, Maya Tata, Neville Tata, Manasi Tata, Jamset Tata, Tiana Tata, and others, as mentioned in a family statement.
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